Silver rose to above$28 per ounce, hitting a near two-week high as further evidence that US inflation is cooling reinforced expectations for Federal Reserve interest rate cuts. Data released this week showed that both producer and consumer prices in the US rose less than expected in July, with the annual headline CPI posting the lowest reading since March 2021.
Markets are fully priced in for a Fed rate cut in September, but remain divided on whether it will be a 25 or 50 basis point reduction. A total of 100 bps of easing is also seen this year. Elsewhere, Australian miner Perth Mint reported that its silver product sales surged 91% month-on-month to 939,473 ounces in July, the highest level since February. US-bound shipments accounted for most of its silver sales which remains the firm's biggest market.
Source: Trading Economics
